Sharp regional division in M&A prospects:
APAC and EMEA show continued growth, NA and LATAM forecast to
decline
The Intralinks Deal Flow Predictor (DFP), an indicator of future
mergers and acquisitions (M&A) announcements with a proven
track record for accuracy, forecasts no growth in the total number
of M&A deals to be announced globally through the first nine
months of 2016 compared to the same period in 2015. Compared to
last quarter, we’re seeing an overall slowdown in early-stage
M&A activity, and there is a possibility that the full year
2016 will see an overall global M&A decline compared to 2015.
While the global headline figure appears to indicate a stalling of
dealmaking activity, there is a remarkable division when looking at
the four global regions. In two regions – Asia Pacific (APAC) and
Europe, the Middle East & Africa (EMEA) – early-stage M&A
activity grew by nearly 10 percent and 8 percent in Q1 2016,
respectively, whereas in Latin America (LATAM) and North America
(NA) it declined by 8 percent and 9 percent, respectively.
“We’re starting to see a slowdown in M&A activity in NA and
LATAM amid growing uncertainty over the state of the global economy
and continued weakness in commodity and oil prices,” said Matt
Porzio, Vice President of M&A Strategy and Product Marketing at
Intralinks. “Nevertheless, corporate executives are facing
challenges in finding ways to grow in a weak economy with low
inflation, and the pressure to continue to do deals could outweigh
nervousness. Based on our insights into early-stage M&A
activity, we are predicting a flat first nine months in terms of
deal announcements globally compared to last year, with NA and
LATAM declining due to reduced business confidence, falling
corporate profits and the commodities slump. Meanwhile, APAC will
continue to grow, as dealmakers target acquisitions to benefit from
the region’s fast-growing economies and growing middle class. This
may be surprising due to moderation in Chinese growth, and
recovering European economies and quantitative easing measures by
the European Central Bank (ECB) continuing to support strong levels
of M&A activity in Europe.”
The Intralinks DFP forecasts the volume of future M&A deal
announcements by tracking the number of early-stage M&A deals
that are in preparation or have reached the due diligence stage. On
average, these deals are six months away from their public
announcement. The Intralinks DFP has been independently verified as
an accurate predictor of the number of future M&A deal
announcements.
The Intralinks DFP’s findings are consistent with the responses
to Intralinks’ latest quarterly Global M&A Sentiment Survey,
which polled M&A dealmakers in April 2016 and involved
responses from 1,500 M&A professionals. The survey’s findings
included the following:
- 45% of respondents in APAC expect to
participate in more deals over the next six months than the
previous six months, a decline from 56% in the previous survey in
December 2015
- 51% of respondents in EMEA expect to
participate in more deals over the next six months than the
previous six months, a slight increase from 50% in the previous
survey in December 2015
- 49% of respondents in LATAM expect to
participate in more deals over the next six months than the
previous six months, a decline from 57% in the previous survey in
December 2015
- 45% of respondents in NA expect to
participate in more deals over the next six months than the
previous six months, a decline from 49% in the previous survey in
December 2015
- Dealmakers in APAC, EMEA and NA are
most concerned about a global economic slowdown having an impact on
M&A activity in their region over the next six months, whereas
dealmakers in LATAM expect commodity and energy prices and monetary
policy to have the most significant impact on M&A activity in
their region over the next six months
- In NA, 46% of respondents believe that,
if elected, Donald Trump will have a negative impact on M&A
activity in their region
- In EMEA, 87% of respondents believe
that a vote by the UK to leave the EU will have an impact on
M&A activity in the UK and/or Europe, and of those 83% think it
will have a negative impact
Download the complete Intralinks DFP report.
About the Intralinks Deal Flow Predictor
The Intralinks Deal Flow Predictor provides Intralinks'
perspective on the level of M&A due diligence activity taking
place during any given period of time. The statistics contained in
the Intralinks DFP represent the volume of VDRs opened, or proposed
to be opened, through Intralinks or other providers for the purpose
of conducting due diligence on proposed transactions including
asset sales, divestitures, private placements, financings, capital
raises, joint ventures and partnerships. These statistics are not
adjusted for changes in Intralinks' share of the VDR market or
changes in market demand for VDR services. These statistics may not
correlate to the volume of completed transactions that may be
reported by market data providers and should not be construed to
represent the volume of transactions that will ultimately be
consummated during any period of time. Indications of future
completed deal activity derived from the Intralinks DFP are based
on assumed rates of deals going from due diligence stage to
completion. In addition, the statistics reported by market data
providers may be compiled with a different set of transaction types
than those set forth above.
THIS PRESS RELEASE AND THE INTRALINKS DFP (COLLECTIVELY THE
"MATERIALS") ARE PROVIDED "AS IS" FOR INFORMATIONAL PURPOSES ONLY.
INTRALINKS MAKES NO GUARANTEE, REPRESENTATION OR WARRANTY OF ANY
KIND REGARDING THE TIMELINESS, ACCURACY OR COMPLETENESS OF THE
CONTENT OF THE MATERIALS. THESE MATERIALS ARE BASED ON INTRALINKS'
OBSERVATIONS AND SUBJECTIVE INTERPRETATIONS OF DUE DILIGENCE
ACTIVITY TAKING PLACE, OR PROPOSED TO TAKE PLACE, ON INTRALINKS' OR
OTHER PROVIDERS' VDR PLATFORMS FOR A LIMITED SET OF TRANSACTION
TYPES. THESE MATERIALS ARE NOT INTENDED TO BE AN INDICATOR OF
INTRALINKS' BUSINESS PERFORMANCE OR OPERATING RESULTS FOR ANY
PRIOR, CURRENT OR FUTURE PERIOD, NOR ARE THESE MATERIALS INTENDED
TO PROMISE, GUARANTEE OR ASSURE FUTURE LEVELS OF COMPLETED DEAL
ACTIVITY. THESE MATERIALS ARE NOT INTENDED TO CONVEY INVESTMENT
ADVICE OR SOLICIT INVESTMENTS OF ANY KIND WHATSOEVER.
THE INTRALINKS DFP MAY BE USED SOLELY FOR PERSONAL,
NON-COMMERCIAL USE. THE CONTENTS OF THE INTRALINKS DFP MAY NOT BE
REPRODUCED, DISTRIBUTED OR PUBLISHED WITHOUT THE EXPRESS WRITTEN
PERMISSION OF INTRALINKS. FOR PERMISSION TO REPUBLISH INTRALINKS
DFP CONTENT, PLEASE CONTACT info@intralinks.com.
About Intralinks
Intralinks Holdings, Inc. (NYSE:IL) is a global content
collaboration company that provides cloud-based solutions to
control the sharing, distribution, and management of high value
content within and across organizations according to the
highest-level of security and the most stringent compliance
regulations. Over 90,000 clients, 99% of the Fortune 1000
companies, have depended on Intralinks' to digitally transform and
simplify critical business processes, and secure high-value
information. With a 20-year track record of enabling high-stakes
transactions and business collaborations valued at more than $30
trillion, Intralinks is a trusted provider of easy-to-use,
enterprise strength, cloud-based collaboration technology. For more
information, visit www.intralinks.com.
Forward Looking Statements
The forward-looking statements contained in this press release
are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements are express or implied statements that are not based on
historical information and include, among other things, statements
concerning Intralinks' plans, intentions, expectations,
projections, hopes, beliefs, objectives, goals, and strategies.
These statements are neither promises nor guarantees, but are
subject to a variety of risks and uncertainties, many of which are
beyond our control and could cause actual results to differ
materially from those contemplated in these forward-looking
statements. Accordingly, there can be no assurance that the results
or commitments expressed, projected, or implied by any
forward-looking statements will be achieved, and readers are
cautioned not to place undue reliance on any forward-looking
statements. The forward-looking statements in this press release
speak only as of the date hereof. As such, Intralinks undertakes no
obligation to update or revise the information contained in this
press release, whether as a result of new information, future
events or circumstances or otherwise. For a detailed list of the
factors and risks that could affect Intralinks' financial results,
please refer to Intralinks public filings with the Securities and
Exchange Commission from time to time, including its Annual Report
on Form 10-K for the year-ended December 31, 2015.
Trademarks and Copyright
"Intralinks" and the Intralinks' stylized logo are the
registered trademarks of Intralinks, Inc. © 2016 Intralinks,
Inc.
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version on businesswire.com: http://www.businesswire.com/news/home/20160428005182/en/
Intralinks Holdings, Inc.MediaIan Bruce,
508-574-2016ibruce@intralinks.comorInvestorDean Ridlon,
617-607-3957dridlon@intralinks.com
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